Contact: Nadine Kottom-Dale | 612-391-7000

Saint Paul, MN – “The trend of TIF districts finishing projects earlier continues,” said Auditor Julie Blaha. “This is good news.”

Tax increment financing (TIF) is a financing tool established by the Legislature to support local economic development, redevelopment, and housing projects. TIF allows development authorities to fund these activities by using the additional property taxes, referred to as "tax increments", that are generated from the increased value of the new development. The Office of the State Auditor (OSA) provides education and conducts oversight activities that help ensure good stewardship of tax increment financing. The 2023 TIF Legislative Report covers 2023 activities reported in 2024.

Highlights and Trends from 2023:

• Revenue Increase: $238 million in tax increment revenue was generated statewide, a 3% increase from 2022, marking the end of a two-year decline. However, revenues remain below the last decade’s 2019-2021 peak. (Pages 18-21)
• TIF Districts: 377 development authorities submitted reports to the OSA for 1,678 TIF districts, a slight increase from 2022. (Pages 9-12)
• Early Decertification: 76% of redevelopment, 75% of housing districts, and 40% of economic development districts decertified early from 2019-2023, continuing a shift away from maximum term decertification. (Pages 16-18)
• New Districts: 71 new TIF districts were certified, a 12% decrease from 2022. Housing districts overtook redevelopment districts as the most prevalent type of district in Greater Minnesota. (Pages 13-16)
• Revenue Redistribution: Development authorities returned $7.35 million of tax increment revenue to local governments. (Page 23)
• Outstanding Debt: TIF districts had over $1.8 billion in debt, a slight increase from 2022. Nearly 71% of this debt was Pay-As-You-Go (PAYG) debt, which has steadily grown as a share of total TIF debt, furthering a shift away from general obligation bonds. (Pages 22-24)

The complete report is available on the OSA website.